It was a busy week for publicly-traded companies in the digital health services sector as many reported their third quarter earnings. Here’s a look at the results from a few notable companies.
Losses don’t derail Oak Street Health
Oak Street Health, a Chicago-based tech-enabled company that offers primary care for Medicare-aged patients, reported a net loss of $130.4 million in the third quarter. But experts said other metrics are more indicative of the company’s overall health.
“Things don’t move that quickly at Oak Street—the model doesn’t change that much,” said Sandy Draper, senior managing director at Guggenheim Partners, a global investment and advisory firm. “I sort of feel like you need to evaluate this company on an annual basis.”
Rather than focusing a great deal of attention on quarterly findings, Draper said he instead looks at how quickly the company is able add more physical centers, which appears to be an increasing focus.
“The general progression for Oak Street within any given year is going to be smaller losses at the beginning of the year and then bigger losses at the end of the year—that’s the normal cadence,” he said. Draper added that he anticipates growth to slow as macroeconomic challenges mount.
The company’s revenue was $545.7 million, up 40% year over year and it increased year-end revenue guidance. This helped boost the stock 10% from trading at $18.67 per share at close of business Monday to $21.61 per share at close of business Thursday.